India’s petroleum ministry has launched the bidding round for discovered small oil and gas fields. The round launched on Wednesday in New Delhi aims to boost domestic oil and gas resources through the development of the existing hydrocarbon reserves.
The new bidding round was launched by Shri Dharmendra Pradhan, Minister of State (I/C) for Petroleum and Natural Gas
Discovered small fields are oil and gas blocks which have so far remained commercially undeveloped, but are now in focus as the central government seeks to boost domestic hydrocarbon production.
Under the announced ‘Discovered Small Fields Bid Round-2016’, 46 Contract Areas consisting of 67 different small fields are being offered to international investors, for exploration and production.
Bids are being invited for developing and monetizing these contract areas which are estimated to have 625 million barrels of oil and oil equivalent gas (O+OEG) in-place. These volumes are spread over 1500 square kilometers in onshore, shallow water and deepwater areas.
Speaking on the occasion, Shri Pradhan highlighted that India is now moving towards a new era of hydrocarbon production, driven by a forward looking Hydrocarbon Exploration and Licensing Policy (HELP); and a new fiscal model based on Revenue Sharing Contract. This new phase is a move ahead from the earlier NELP; and Production Sharing Contract regime and addresses various industry concerns that led to slowdown in investment over the last few years, the ministry said.
Single license for exploring all forms of hydrocarbons, graded system of royalty rates, pricing and marketing freedom for crude oil and natural gas, were some of the highlights of HELP mentioned by the Minister.
He said that the Government is following principles of Enhancing Production, Attracting Investment, Generating Employment, Transparency, and Minimizing administrative discretion. Shri Pradhan said that a simpler and transparent administrative and fiscal system has been crated.
The ministry will hold roadshows at different parts of the country and international venues to attract maximum interest of prospective bidders for the ‘Discovered Small Fields Bid Round-2016’, and to encourage industry players to participate in the bid process.
According to a recent report by the International Energy Agency, Indian energy demand is expected to grow by more than any other country in the period to 2040, propelled by an economy that grows to more than five-times its current size and by population growth that is expected to make it the world’s most populous country.
IEA projects that Indian energy consumption will more than double to 2040, accounting for 25% of the rise in global energy use to 2040, and the largest absolute growth in both coal and oil consumption.
Some highlights and features of India’s latest bidding round are: